16-Dec-2011

Moderating Inflation Gives Food For Harmless Fun

Since [the early 1970s and between late 1970s to early 1980s], high food inflation episodes were relatively short-lived, with the longest one lasting 27 months in the early 1990s. Even in the severe drought conditions of 1987, the double-digit food inflation episode lasted just 18 months.

All of that pales in comparison with the latest spell of 38 months when inflation stayed above 10 per cent, despite a record 13 rate hikes by the Reserve Bank of India since March last year.